"Buy the rumor, sell the news is stock market folklore for a reason.
Stocks can potentially experience big price spikes based on speculation and rumors. Often, these hype-fueled spikes outweigh the reaction to actual news.
It doesn’t make sense at first. But a lot of things in the stock market don’t make sense until you study, learn, and start to understand how trading really works.
The stock market is forward-thinking. Most people are trying to anticipate what will happen in the future. I like to study the past and look for patterns. That helps me find ‘buy the rumor, sell the news’ plays that I can get in on and ride the wave of anticipation and hopefully generate profits.
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